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These were cut and pasted from ADVFN
Here's my comments post Tuesday's presentation...
I had a lengthy conversation with the manager and JPM sales person post their presentation. Here's what I extracted.
Discount - they're clearly frustrated by the scale of the discount and solutions to resolving that were being discussed by the Board / Manager. They agreed that some sort of plan needed to be put forward by the time Final Results were published in late June, ahead of the continuation vote. Their expectation was that the discount would start to narrow ahead of these events, but recognised, and agreed with me, that a solution to sustainably narrow the discount without a return of capital might be difficult to find given the nature of the investments in the trust. Some sort of tender offer was unlikely to happen given the size of the trust, although I wouldn't fully discount that (I don't think it would work or be appropriate). They said that historically if it has been the right thing to return cash to shareholders that is what they have done and would likely do this time, if that was felt it was the right thing to do.
Wind-down - In terms of how easy it would be to realise the assets in the trust, and in particular the private funds, they said that would likely take a number of quarter as redemption requests were met. They are through the lock-up periods in these vehicles, so there is no issue on that front, while JARA owns under 5% in each fund. That shouldn't cause any problems from a redemption perspective unless there is a wall of redemptions from other investors at the same time.
Share liquidity - There isn't much at present, so getting institutional buyers to take advantage of the discount is challenging, particularly when its difficult to see why any current holder would sell at such a wide discount with the continuation vote on the near horizon.
My overall conclusion remains that the risk / reward at current levels is an attractive one given the time horizons involved. The main risk is that we see a collapse in the NAV, but I think that is highly unlikely given the current macro backdrop and the 30% discount provides a good deal of downside protection.
I bought more this morning at 65p.
Some good comments on ADVFN
I just have to remind myself 'They are paying you a Divi to be patient'
Gets a mention in the Mail Online:
https://www.dailymail.co.uk/money/investing/article-12959197/JP-MORGAN-GLOBAL-CORE-REAL-ASSETS-One-core-aim-giving-steady-stream-income-investors.html
It's 27th November and the half year report for the period ending 31st August is being released. Pathetic. It's so out of date it's not worth reading.
The discount to NAV would suggest that on the surface but.. There are so many massive discounts in close ended Inv' Trusts at the moment that it's hard to see. Given the size of the discount the market seems to be pricing in the absolute worse case scenario. So, while I am hurting, it's only a loss if I sell.... and i'm holding on.
I am by no means an expert so DYOR etc etc but the underlying assets seem solid enough, they are getting out of retail and downsizing office it seems . My timeline for this investment is 8 years now so I think the assets will hold their value. As I say I am taking the Divi;s and buying JARA with it to help me average down without risking any more capital and...
oh yeah, I crossed my fingers ;-)
i got a response from jara, just sharing as may be useful: i was passed your email regarding jara and the webcasts by a colleague.
these webcasts are directed at the professional investor audience only on the website. as a self-directed investor you should enter the website through this link and select ‘personal investor’ when prompted.
i appreciate this will be a frustrating response. we are taking part in two live online presentations in the coming of weeks. these are deliberately aimed at giving personal investors access to our investment trusts.
firstly, with mello on tuesday 14 november - https://melloevents.com/mello-investment-trusts-and-funds-tuesday-14th-november-2023/
secondly, with capital access group on wednesday 22 november - https://*********************/events/capital-access-group/jpmorgan-global-core-real-assets-limited-webinar/1907
both of these events should also have a recording available by the hosts.
we hosted an in person event at our offices on 29 sept which had the portfolio manager present on stage and meet with investors afterwards – i mention this because we are providing more opportunities to engage with our investment trusts, the best way to hear about future opportunities if this is of interest is to subscribe to the communication options for the trusts that are relevant to you – you can do this here
It seems the low SP is suggesting or fearing a further drop in NAV or maybe dividends at risk, though the company itself is buying back stock suggesting they think it's good value? Does this fund invest in a collection of other funds rather than directly in equities?
Half year results on the 29th Nov.
Try this: Transportation assets webcast : https://event.webcasts.com/viewer/event.jsp?ei=1593150&tp_key=0707b4dd1d
I've sent JPM a snotogram saying why oh why have you not put your QUarterly update calls in the website? i mean - basics!
If anyone manages to find the first webcast - pls share
I agree that information is hard to find. I did find half of a useful webcast on ADVFN, but have no idea how to access the other half! This deals with the non Asian side of the business: https://event.webcasts.com/starthere.jsp?ei=1618633&tp_key=e78d89f2e2
I think it could be a very good investment but I’d like to know a little more about the assets held. Information on the website seems quite thin. The shares are at a significant discount to net asset value, which appear to remain fairly solid and currently give a 6.4% yield. The company is repurchasing the shares on a daily basis, over 3% so far since August, which it says will only reissue at a premium to the NAV, and to me this suggests an eventual rise in the SP is guaranteed.
Like so many of you - I am sittinmg on a whopping paper loss here. The discount to NAV seems to be massive and unless I'm missing something, it seems to be assuming the collapse of western society or something.
I'm betting that won't happen and once the interest rates start to go down (maybe 6 months?) then the discount will correct.
Until then - I'm getting paid a nice Divi which I am buying more JARA with so - I'm being paid to be patient :-)
In spite of a frightened mass of selling, came a recovery. In spite of the share price rising again, there has been another concerted mass of selling! Is this a co-ordinated shorting campaign, or just some ridiculous herd-like behaviour?
The NAV gap is widening again. I've had some success here previously adding on the regular dips. This could be another good opportunity.
Wow, a year on & that investment hasn't worked out too well (like mine ...). No posts here since then but at least no-one can have a go at me if I'm talking to myself! Fwiw, I'm planning to hold here for now in the hope of a recovery for infrastructure & real estate investments in the second half of 2023 and beyond. I'll pop back next year to see how that worked out.
Quilter has taken a near-15% position here today following the recent weakness in the SP, can't be a bad thing?
Just check PJ and mine arrived today, ii.
Speaking of Divis... we should have got one in November, but im not seeing anything in my ii account anyone else had theirs?
I wish I knew fishybilly, I seem to remember excuses about the exchange rate but it looks like the NAV has remained fairly constant but the discount has widened from mostly trading at a premium since launch. So it might be out of favour with some of the institutionals, nothing to worry about it should eventually be back in favour. For now just enjoy the divi's which is why I bought it.
I cut my losses back in June . Normally to my horror when I sell a share and look at the price 3 months later , it is at least 20% up slightly mitigated by in some cases whatever I've reinvested in has also gone up. I'm looking at you Forterra in particular .
Not this share. Just what is the issue with this one?
Well, we are over 2 years on from launch and the target return of 7-9% net of fees has turned into a negative return (including dividends). NAV is around 91p, so we are even trading at a discount which is rare in this space. It is no wonder they are unable to complete an additional fund raise as they have not demonstrated the ability to deliver anything other than a dividend at the bottom of the expected range (4-6%).
That was a good tip.
"Buy" rating at 81.2p. 12-month average premium to NAV 9.8%, currently discount of -5.7%. Anticipated dividend of between 4 & 6%, charges 0.36%. Trading at a huge discount to similar "flexible" trusts. Sounds good to me - I'm in!